Russian authorities continue to expand state control over key sectors of the economy, as reported by The Moscow Times.
Following the seizure of metallurgical plants, the country's largest pasta producer "Makfa," crab-fishing enterprises in the Far East, and three major alcohol producers, the "soft nationalization" now includes the First Cargo Company — the largest railway operator in the country.
According to Kommersant, First Cargo Company has been transferred to the management of state bank VTB due to outstanding debt and a pledge involving nearly 70,000 of its railcars.
Until November 2023, First Cargo Company was owned by billionaire Vladimir Lisin, once the richest man in Russia and owner of the Novolipetsk Steel Plant (NLMK). The company, valued at nearly $3 billion, was then acquired by the enigmatic "Aurora Invest," reportedly owned by Timur and Ruslan Babaev, sons of former Russian Railways Vice President Salman Babaev.
The Babaevs have now lost control of the company. Sources suggest this is due to alleged breaches of promises made to creditors, including VTB, regarding the deal's organization.
According to Novaya Gazeta. Europe and Transparency International - Russia, over 180 private companies in Russia have been nationalized in the two years since the start of the war in Ukraine. The total assets of these enterprises amount to approximately 1.04 trillion rubles, or about 0.6% of Russia's GDP.
The government has primarily targeted enterprises producing military goods and assets belonging to emigrated businessmen. The most frequently nationalized sectors include the defense industry, machinery, food and fisheries industries, as well as ports and real estate.
Among the nationalized companies are 15 strategic defense enterprises with a combined value exceeding 333 billion rubles, as stated by Russian Prosecutor General Igor Krasnov in May. These enterprises were either illegally privatized or fell into the hands of residents of "unfriendly" countries, who allegedly pursued policies to damage and undermine the country's defense capabilities.
